Six new oil blocks opened for exploration in Tanzania

Tanzania Petroleum Development Corp (TPDC) recently opened the bidding process for hyrdrocarbon exploration in six blocks situated in the interior of the country. Energy and oil companies are invited to submit their offers to explore these areas by December 3.

What are your thoughts about this move to invite more companies to prospect oil and gas in the country? Will the discovery of oil bring more benefits than harm? How can we ensure the “curse of resources” doesn’t befell us?

Click here to read the bid information. The following map shows current and new exploration areas:

Like this:

LikeLoading...

Related

One Response to “Six new oil blocks opened for exploration in Tanzania”

I feel the energy policy which aims at increasing exploration of oil and gas is going into the right direction, why we did not pursue such measures before is baffling.

We need to be energy independant, imagine how much the economy as suffered because of oil price volatility in the seventies and recently when a combination of soaring world oil prices and drought led to an energy crises. It makes sense that we mobilise our resources to achieve our development objectives now, espcially when commodities are the driving force of growth.

I do have seriuous doubt though, that we might arrive at a situation similar to the one we have now with gold production, where we can not even account for value of the minerals mined and exported. I also have reservation at the huge incentives given to investors in the form of tax holidays, it doesnt make sense to tax a person with an income of less than $200 and leave an entity that earns profits in excess of $100 million. Instead of over generous tax incentives the government should concentrate on measures that decrease costs of doing business and creating a legal framework that ensures investors cash is safe and their risks diminished.

Energy sufficiency will improve the balance of trade and save on cash used to import oil and will lead to decreasing prices and lowering the costs of production, lets just hope that the resources discovered will be plentiful and diverse, enough to outstrip demand, so that we can export and earn foreign exchange.

A drawback will be the fact that we will start to enter in the foreign policies of world powers such as the US, and that itself may have dubious implications. Such situations may also led to political consequences especially when such powers decide to support a certain regime….for their interests. I hope we do not go through that path, instead I hope new discoveries kick off an economic growth cycle.